Houlin Zhao Deputy Secretary-General, ITU Digital Convergence: Challenges and Opportunities International Telecommunication Union IT Ministerial Conference,

Houlin Zhao

Deputy Secretary-General, ITU

Digital Convergence: Challenges and Opportunities

International Telecommunication Union

IT Ministerial Conference, Seoul 19 April 2007


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Opportunities: Paradigm Shifts Static market

environments“Divergence” “Circuit-switched Local Low-speed Switch-on Fixed Single medium Distinct

Dynamic, fast-paced innovation

“Convergence”Packet-switchedGlobalHigh-speedAlways-onMobile + FixedMulti-mediaBundled

TO


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Challenges: Digital Convergence Institutional challenges: convergence of ministries,

regulators etc. in telecom spectrum, IT/ICT, broadcasting, which is often a political issue.

Regulatory & legislative challenges: difficulties to catch up technological innovation and convergence in the converged laws/regulations.

Industrial challenges: balance between creating new employment and redundancy as well as convert from legacy networks/technologies to the converged ones with huge costs especially for the developing countries.


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Challenges: Convergence (e.g., NGN)Pricing: Will offer prices that are significantly lower

than those available today?Bundling and billing: How to distinguish real price of

bundled services? Interconnection: Will current interconnection models

(based on per-minute settlement) work ?Security: If much greater capacity is available at the

edges of the network, how to guarantee security? Investment: Will unbundling discourage new

infrastructural investment?Traffic prioritization: Is the Net really “neutral”?Emergency services: What level of universal service

obligation to impose?Competition policy: Significant market power will not

go away in the converged (e.g., NGN) environment ?Consultation: compensation for stranded assets?


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Opportunities NGNs provides an excellent opportunity to agree improved

interfaces in ITU-T to better enable service providers to interconnect and cooperate

Such interfaces, based on ITU-T defined global standards, opens the door to the provision of an unlimited range of applications and services

NGN has the potential to accelerate the deployment of telecommunications networks and services in developing countries

It offers the opportunity for developing countries to jump several generations of technology

The capital costs of deploying NGN technology are significantly lower than circuit switched technologies

Enables a more rapid expansion of network capabilities NGN will enable a range of multimedia services to be provided

easier with less cost, and so increase potential revenues.


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R.O.Korea’s Leadershipin Digital Convergence

0 0.2 0.4 0.6 0.8 1

Korea (Rep.)

Japan

Denmark

Iceland

Singapore

Netherlands

Taiwan, China

HK, China

Sweden

UK

Finland

Norway

Luxembourg

Israel

Macao, China

Switzerland

Canada

Austria

Germany

USA

2001

2006

Source: ITU Digital Opportunity Platform. Provisional data for 2006

Digital Opportunity Index2001: Korea’s DOI =

- Overall: 0.60 (rank #2)

2006: Korea’s DOI =

- Overall: 0.80 (rank #1)

- Mobile: 0.65 (rank #2)

- Fixed: 0.88 (rank #1)


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R.O.Korea’s ICT Sector: The mainspring of its economic growth

0%

1%

2%

3%

4%

5%

6%

1990 2005

Korea

World

Telecoms revenue as a percentage of GDP

R.O.Korea• 1990 = 2.0%

• 2005 = 4.8%

World Average• 1990 = 1.8%

• 2005 = 3.0%

Source: ITU World Telecom Indicators Database.


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ITU’s mandates and leadership in digital information society

ITU-R: allocation for the appropriate frequency/spectrum for the converged technologies, networks and services, and develop technical standards for radio access and other radiocommunication services.

ITU-T: set international standards (i.e., Recommendations) to ensure interoperability, security etc. in the converged telecoms/ICts, bridge the standardization gap.

ITU-D: assist members in developing and moving towards the converged telecom/ICT environment through providing expert support, trainings to equipments/facilities.

Closer collaboration between the three ITU Sectors.

More


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ITU - WSIS Action Line C2ICT infrastructure facilitation: ITU “Information and Communication Infrastructure”

Main orientation for actions in C2: Facilitation of large scale initiatives Development of thematic activities.

Strategy to link national, regional and international initiatives to facilitate large scale infrastructure projects.

C2 Group, endorsed five (5) large scale ITU projects: Harmonization of ICT Policies for 43 African States Harmonization of ICT Policies for 17 Caribbean States Capacity Building on ICT Policies for 14 Pacific States International fibre optics: Infinity project West Africa, ICT Applications and Connectivity : Pacific Island

States, studied by ITU, funding to be secured


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ITU - WSIS Action Line C2 Plan of Action aims at the facilitation of the

following core Activities:1. Development of National e-Strategies;2. Harmonization of the ICT Policies in the different

regions;3. Development of regional and large-scale national

initiatives;4. Launch of global thematic ICT Infrastructure

initiatives for:“Public Access”;“ICT-Applications for Development”;“Broadband Wireless Access”;“Large-scale ICT backbones”

5. Development of a virtual financing platform;6. Deployment of an online tool for ICT Development

Assessment.


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October-November 2007:- Radiocommunication Assembly, and- World Radiocommunication Conference

October 2008:- World Telecommunication Standardization Assembly, and- Worldwide Standardization Roundtable and Coordination Meeting


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World Telecom Policy Forum ’09

Topic: “Convergence and emerging policy issues”

Timetable:30 June 2007: Deadline for first contributions1 September 2007: First draft of SG’s reportSpring / Autumn 2008: Two meetings of informal

expert group15 December 2008: Deadline for final draft24 March 2009: Information Session for WTPF25-27 March 2009: 4th WTPF


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Thank you

Houlin ZhaoITU Deputy Secretary-General

[email protected]

Tel.: +41 22 730 5595Fax: +41 22 730 5137

Documents

Houlin Zhao Deputy Secretary-General, ITU Digital Convergence: Challenges and Opportunities International Telecommunication Union IT Ministerial Conference,